Section 5 in The Companies (Accounting Standards) Rules, 2006
5.
An existing company, which was previously not a Small and Medium Sized Company (SMC) and subsequently becomes an SMC, small not be qualified for exemption or relaxation in respect of Accounting Standards available to an SMC until the company remains an SMC for two consecutive accounting periods.Annexure(See rule 3)Accounting StandardsA. General Instructions
